In an expansion of its portfolio of fixed index annuity products, Voya Financial, Inc. (NYSE: VOYA) has just announced the new Voya Journey Index Annuity. According to a recent InsuranceNewsNet article, the new product provides investors with a simple “two stage interest-crediting approach that offers full growth potential, while providing protection from market declines.” Individuals also have the flexibility to use multiple crediting strategies with the addition of dynamic indices from J.P. Morgan (J.P. Morgan MeridianSM Index) and Citigroup (Citi Dynamic Asset Selector 5 Excess Return Index).
“Americans are looking for new ways to grow and protect their retirement savings in today’s uncertain world,” stated Voya’s CEO of Annuities and Individual Life, Carolyn Johnson. “The Voya Journey Index Annuity gives individuals the ability to plan with confidence. They can enjoy the benefits of increasing their future retirement income and rest easy knowing that their hard-earned savings are protected from unpredictable market swings.”
The new annuity product is a single-premium deferred fixed index annuity that offers full participation in the growth of one or more dynamic indices over a seven-year time period. Individuals can pick between the J.P. Morgan and Citigroup indices, which both seek to adjust to market conditions to provide steady growth potential. But one of the most distinguishing features of the Voya Journey Index Annuity is the simple “two stage” approach to growing retirement funds. In the first stage, the account value can potentially earn an annual “performance” credit when the selected index remains above the initial level during the first six years. In the second stage, the policyholder has the potential to earn more interest credit. At the end of the seventh year, 100% of the selected index gains over the seven-year period are credited to the original premium.
“In today’s low interest rate environment, the Voya Journey Index Annuity is a good alternative to taxable bank certificates or the volatility of bond mutual funds,” Johnson added. “Individuals have the opportunity to potentially earn better returns and still have protection from market volatility.”
The market for fixed index annuities is growing, making the Voya Journey Index Annuity even more attractive. According to LIMRA sales data, fixed index annuity sales increased 22% in the first nine months of 2016 when compared to the same time frame the previous year. Industry experts believe that this demonstrates an interest by consumers in the benefits of such products to help provide a dependable stream of income in retirement.
The new fixed index annuity is issued by the Voya Insurance and Annuity Company, a member of the Voya Financial family of companies.
Written by Rachel Summit
